Sunday, 23 August 2015

Qantas bounced back with S$ 1 billion pre-tax profit

After a massive staff retrenchment exercise, severe cost cuttings, reduction of unprofitable routes, cancellation of aircraft orders and low fuel cost, Qantas is able to make a remarkable turnaround from a loss of A$2.8 billion in 2014 to a pre-tax profit of A$ 975 ( S$1 billion) in 2015.
What an achievement!

Will SIA follow in Qantas's footsteps? I mean the laying off of staff, adopt severe cost cutting measure etc in order to stop its profit from declining any further?
My humble opinion is that SIA may adopt the Qantas "style" of doing things if the share price and profit is sliding further. It may not lay off thousands of staff but perhaps in the hundreds. SIA has already been cutting cost steeply and there is nothing more left to cut.

Sack all cho bo lan crew will be a more appropriate action. Plus station security checks at airport clearance to nab those thiefs. This will cut down and save a lot of money lost through pilferage by crew.

Cut all unprofitable sectors and sack 2,000 cabin crew and 200 pilots.Get rid of staff like S.See, Harry, Kassim and all the cho bo lanmanagers and most likely SIA will make $1 bil the next financial year.

Before this immense pofit was achieved, QANTAS went through a massive reorganisation that inlculded, retrenchment, downsizing, staff and costs reduction. These measures were painful for some years but produced the desired results. SIA undertook similar measures but the airline's performance has been dismal and far from satisfactory. QANTAS ahare price had soared 200 per cent in the last two years.

Look at Snowy Beagle's post. Australian accountants are so accurate. It may also be right for us to assume that The Budget carriers of Australia are also doing a great job in their inflight service. Jet Star is an example.